Consider a 5-year, fixed rate mortgage with an original balance of $53,000 and an interest rate of 5.8%. Suppose right after the month 7 payment has been made, the interest rate declines by 2.2%. If closing and transaction fees add up to 1,129, then does it make sense to refinance the existing mortgage at this point in time with a new 5-year fixed rate mortgage?

If your answer is yes (it makes sense to refinance), then answer 1. Otherwise answer 0.